Block-based motion compensation is an integral operation in a variety of video codecs that exploits temporal correlation to achieve compression of video data. However, one needs to signal motion vector(s) of each block to the decoder so that the process of motion compensation can be replicated at the decoder. The efficiency of compression achieved by motion compensation is dependent on the efficiency with which motion vectors are signaled. Typically, a predictor is derived for each motion vector from a causal neighborhood and only the difference is coded as part of the bitstream. Existing techniques do not exploit all the redundancy in deriving the predictor and hence there is scope for improvement.